Sask. 2024-25 budget includes $273.2M projected deficit, no tax cuts or increases
Adam Hunter | CBC News | Posted: March 20, 2024 8:16 PM | Last Updated: March 20
Opposition says budget has 'zero new measures to help make life more affordable'
Saskatchewan's Finance Minister Donna Harpauer delivered her final budget on Wednesday, projecting a $273.2 million deficit for 2024-25.
Harpauer, who has announced she will not seek re-election, said this budget is not exactly the one she was hoping to go out on.
"I would have loved to have ended [with a] budget that was balanced and was able to do a tax reduction. However, it is the budget I am comfortable with," Harpauer said.
She said her caucus colleagues and the premier wanted to prioritize "substantive increases," which she called "the right thing to do right now."
The government branded this budget as "Classrooms, Care, and Communities."
Throughout the budget document, the government boasts of "record" spending in several areas including, health, education and capital projects.
The budget does not include a PST cut or a reduction to provincial gas tax, but also does not add new taxes or increase existing ones.
The government released many of its budget plans — and even spending figures — in the days and weeks before the official document was released.
"This budget addresses the challenges of a growing province by reinvesting the benefits of growth in the areas that matter most to Saskatchewan people — education, health and our communities," Harpauer said.
Harpauer said a projected population of 1.25 million will help "fuel the economy." She said the government is projecting a return to balance by 2025-26, with a projected $18-million surplus for next fiscal year. At this time last year, the government was projecting a $208-million surplus for 2024-25.
Watch a replay of CBC's live coverage from budget day here:
Current "taxpayer-supported" debt is $21 billion and "self-supported" debt is $13 billion, bringing the province's total debt to $34 billion.
The government said it is projecting net debt as a per cent of GDP at 14 per cent as of next March, the second lowest among provinces.
Premier Scott Moe said the government would have liked to balance its budget, but committed to spending and capital projects.
"We are putting cash and using debt to continue to build schools, 11 new schools this year. It's the capital plan that continues to put pressure on the budget."
Revenues for 2024-25 are projected at $19.9 billion, up $184.2 million (0.9 per cent) from last year.
The top three revenue generators are:
- Taxes: $9.72 billion.
- Federal transfers: $3.78 billion.
- Other own source revenue: $3 billion.
Harpauer said non-renewable resource revenues are projected to be lower due to a "moderation in potash prices." Non-renewables make up 13.5 per cent of total projected revenue, below the government's target of 15 per cent.
Expenses are projected to be $20.1 billion, an increase of $1.5 billion (7.9 per cent) from last year's budget. The government is touting "record" spending in many areas, including the major ministries.
The top three areas of expense are:
- Health: $7.6 billion.
- Education (including post-secondary): $4.4 billion.
- Social Services and Assistance: $1.7 billion.
The government is basing its projections on the following forecasts for the end of the 2024 calendar year:
- WTI Oil price — $77.00 US/barrel.
- Potash — $263.9 US/KCI tonne.
- Canadian dollar — $0.74 US.
- Real GDP — 1 per cent increase.
- Retail sales — 2.2 per cent increase.
Health
Health care makes up the biggest piece of the spending pie. More than half of the $7.6-billion budget will go to the Saskatchewan Health Authority, which is set to receive $4.7 billion, a 5.6 per cent increase from last year.
Harpauer said one focus for that money will be the Health Human Resources Action Plan, "to recruit, train and retain skilled health-care professionals to ensure health professionals have appropriate facilities to provide care to the people of Saskatchewan."
On Monday, the federal government announced $560 million in health transfers to Saskatchewan to be spent in various areas including recruitment, retention and training.
The budget includes $516.8 million in health infrastructure spending, a year-over-year increase of $179.3 million. This includes the Prince Albert and Weyburn Hospital projects, a new long-term care home in La Ronge, the completion of the Regina General Hospital parkade and long-term care beds in Regina.
The government has dedicated $30 million to addressing capacity pressures in Regina and Saskatoon, and $10 million to the Regina Urgent Care Centre.
The Saskatchewan Cancer Agency will receive an increase of $26.1 million, bringing its budget to $249 million. This will include $3.5 million to establish Regina's new breast assessment centre.
Sarah Wright, a breast cancer survivor and advocate, said this assessment centre is a big deal.
"It's so, so, so exciting," she said.
Wright has dedicated her time to making the breast cancer path easier for others than it was for her — from raising awareness by holding a pink sign on a Regina sidewalk to having conversations with the health minister.
"This is democracy at work."
The mental health and addictions budget is $574 million, more than seven per cent of the total health budget.
Addictions are affecting people in communities all across the province — no matter how small or big, or how north or south — said Randy Goulden, president of the Saskatchewan Urban Municipalities Association.
The province has committed to increasing treatment and detox beds.
"We're hoping that they can staff all those beds and continue to to help with the support in the communities," Goulden said. "We'd also like to see more done with harm reduction."
Education
Details of the education portion of the budget have been public for two weeks, thanks to a video Premier Scott Moe posted on social media. Much of the discussion about education spending had been focused on the ongoing labour dispute with the Saskatchewan Teachers' Federation (STF) over a new contract.
Teachers held a provincewide strike Wednesday. As Harpauer detailed the budget for reporters inside the Legislature Building Wednesday morning, the sounds of protest from outside were audible.
"We are investing in what teachers and students have told us matter the most," Harpauer said.
The ministry will receive $3.3 billion, an increase of 8.1 per cent or $247.8 million. This includes pre-K-12 schools, early learning, child care and libraries.
"We have schools where the roof is leaking, schools that are flooding regularly when it rains. We know that capital investment is needed, but at the same time, they're only investing in capital and they get these shiny new buildings," said Samantha Becotte, president of the Saskatchewan Teachers' Federation, in response to the budget.
"They're not putting the teachers and the professionals that are needed in order to fill those classes and get students what they need to be successful."
Of the total education budget, $2.2 billion will go to the 27 school divisions. The government previously said $356 million would "support classrooms, including funding to address classroom size and complexity," an increase of $45.6 million or 14.7 per cent on the previous budget.
In a statement, the Saskatchewan School Boards Association (SSBA) welcomed the education budget, saying the commitments announced should help school boards catch up on enrolment growth and help stabilize the education sector.
Jaimie Smith-Windsor, president of the association, noted the budget targets inflationary costs, non-teacher salaries, rising fuel costs and includes "unprecedented plans for multi-year funding."
"This is the kind of budget we need to see on a regular basis to ensure stability … the multi-year commitment for classroom supports represents a floor, not a ceiling for funding."
WATCH | Saskatchewan School Boards Association says Sask. budget provides stability in education:
Social Services
The Ministry of Social Services will have a budget of $1.5 billion, an increase of $112 million (7.8 per cent) compared to 2023-24.
Of that, $16.7 million is earmarked for homelessness response. The government is also spending $83 million to "maintain and repair" provincially-owned housing units.
This budget doesn't do enough for the province's most vulnerable, according to Peter Gilmer, who works with the Regina Anti-Poverty Ministry.
"Whether it's income security, you know, whether it's affordable housing, whether it's child care, the reality is that, this budget is failing."
Saskatchewan Income Support and Saskatchewan Assured Income for Disability benefits are rising by three per cent.
"That just doesn't cut it, and people have been falling further and further behind because of inflationary pressures," Gilmer said. "This really does nothing to deal with the real cost of living concerns that people have."
Gilmer said there wasn't enough in the budget to address affordable housing or make child care more accessible.
Opposition says budget provides 'no relief'
The NDP Opposition has been calling for the province to cut the $0.15 fuel tax. The government has declined that request, saying it is providing cost-of-living relief by not collecting the carbon tax on home heating.
"The Sask. Party had a real chance to show that they are listening and get the challenges folks are going through, and they blew it," Opposition Leader Carla Beck said.
Beck called it "an election year budget" that includes "zero new measures to help make life more affordable for working families."
NDP Finance critic Trent Wotherspoon focused on health care and education.
"Our hospitals and health care aren't working when we need them, our classrooms are at a breaking point and people working in them feel ignored and disrespected," he said.
Wotherspoon said previous election-year budgets saw "devastating cuts."
"There's a reason why thousands of hardworking teachers are in front of this building. Remember the 2016 election-year budget, like this one, that was heavy on promises that were broken, with devastating cuts imposed instead."
WATCH | Canadian Taxpayers Federation disappointed Sask. budget doesn't include tax relief for families:
The NDP's concerns about rising debt and a lack of affordability measures were shared by others.
"It's disappointing to see the Saskatchewan government once again fail to balance the budget. That means more debt, more money spent on interest payments," said Gage Haubrich, Prairie director of the Canadian Taxpayers Federation.
While there was no tax relief in the budget for families, the government did implement a small business corporate tax rate freeze.
"For small businesses that are struggling with rising costs, this tax-break is much needed," said Brianna Solberg from the Canadian Federation of Independent Business.
Capital Spending
The government has said its capital budget is the largest in history at $4.4 billion.
Projects include:
- $180 million for the Prince Albert Victoria Hospital.
- $55 million for the Weyburn General Hospital.
- $27 million for a La Ronge long-term care home.
- $22 million to complete Regina General Hospital parkade.
- $617 million for roads.
- $2.6 billion for Crown utilities and infrastructure.
- $216 million for school infrastructure.
Future projections
The government is projecting three straight years of surpluses starting next year:
- 2025/26: $18 million.
- 2026/27: $225 million.
- 2027/28: $340 million.